August 11, 2023
Sustainability management is complex, expensive and constantly evolving. The ESG ecosystem is crowded with multiple frameworks and guidelines for sustainability reporting. Navigating through this constantly changing ecosystem can be challenging, especially for organisations that have limited experience with sustainability reporting. It hence becomes essential to understand the benefit different frameworks provide to an organisation and its stakeholders.
The Sustainability Accounting Standards Board (SASB) was founded as a nonprofit organisation in 2011 to help businesses and investors develop a common language about the financial impacts of sustainability. It is one of the most prominently used standards for sustainability reporting - helping companies attain ESG compliance and giving investors insight into financially material sustainability factors. The International Integrated Reporting Council (IIRC) and the SASB merged into the Value Reporting Foundation (VRF), in June 2021.
SASB sets standards for the disclosure of sustainability oriented information by companies to their stakeholders. SASB standards track ESG issues and performance across 77 industries.
SASB, unlike other ESG compliance and reporting frameworks, is catered to specific industries. They take into account that different industries have different sustainability risk factors to build out industry specific disclosures for ESG compliance requirements. SASB’s framework is built to support companies in sharing their ESG impacts through the language of investors, debt holders, and internal financial stakeholders.
The SASB standards deliver important benefits for corporations, investors, and ESG adoption overall.
SASB Standards identify the sustainability information that is financially material, which is to say material to understanding how an organisation creates enterprise value. The framework is designed for users whose primary objective is to improve economic decisions. 2424 companies have used SASB for ESG compliance reporting since 2020.
SASB offers immense value to organisations working towards ESG compliance. The industry specific model draws attention to the most appropriate disclosures for the business and the investors. Its unique benefits along with its collaborative approach through partnerships with organisations like the Value Reporting Foundation (VRF) positions the framework to become a global standard for ESG reporting.
Explore the relevance of the Sustainability Accounting Standards Board (SASB) for businesses and investors in ESG reporting. Industry-specific standards for accurate and meaningful sustainability disclosures.